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Segment Information and Concentrations of Risk
12 Months Ended
Dec. 31, 2013
Segment Information and Concentrations of Risk Disclosure [Abstract]  
Segment Information and Concentrations of Risk
 
(14)
Segment Information and Concentrations of Risk
 
We operate under two reportable segments, Merge Healthcare and Merge DNA.  Our Merge Healthcare operating group, which represents about 83% of our total revenue in 2013, markets, sells and implements interoperability, imaging and clinical solutions to healthcare providers.  Our Merge DNA (Data and Analytics) operating group represents the remaining revenue and focuses on data capture software for clinical trials and other solutions.
 
We evaluate the performance of these operating groups based on their respective revenues and operating income, which exclude public company costs, certain corporate costs (amortization expense that is not specific to a segment), net interest expense and income taxes.
 
The following tables present operating group financial information for the periods indicated.
 
 
 
Year ended December 31, 2013
 
 
 
Healthcare
  
DNA
  
Total
 
Net sales:
 
  
  
 
Software and other
 
$
57,371
  
$
21,204
  
$
78,575
 
Professional Services
  
28,290
   
15,540
   
43,830
 
Maintenance and EDI
  
107,220
   
2,042
   
109,262
 
Total net sales
  
192,881
   
38,786
   
231,667
 
Expenses
  
171,838
   
35,094
   
206,932
 
Segment income
 
$
21,043
  
$
3,692
   
24,735
 
 
            
Net corporate/other expenses (1)
          
60,829
 
Loss before income taxes
         
$
(36,094
)
 
 
 
Year ended December 31, 2012
 
 
 
Healthcare
  
DNA
  
Total
 
Net sales:
 
  
  
 
Software and other
 
$
78,941
  
$
15,525
  
$
94,466
 
Professional Services
  
27,552
   
13,426
   
40,978
 
Maintenance and EDI
  
110,894
   
2,566
   
113,460
 
Total net sales
  
217,387
   
31,517
   
248,904
 
Expenses
  
192,408
   
33,315
   
225,723
 
Segment income (loss)
 
$
24,979
  
$
(1,798
)
  
23,181
 
 
            
Net corporate/other expenses (1)
          
47,910
 
Loss before income taxes
         
$
(24,729
)
 
 
 
Year ended December 31, 2011
 
 
 
Healthcare
  
DNA
  
Total
 
Net sales:
 
  
  
 
Software and other
 
$
76,947
  
$
4,001
  
$
80,948
 
Professional Services
  
23,437
   
18,468
   
41,905
 
Maintenance and EDI
  
109,562
   
13
   
109,575
 
Total net sales
  
209,946
   
22,482
   
232,428
 
Expenses
  
166,898
   
20,406
   
187,304
 
Segment income
 
$
43,048
  
$
2,076
   
45,124
 
 
            
Net corporate/other expenses (1)
          
46,990
 
Loss before income taxes
         
$
(1,866
)
 
 
(1)
Net corporate/other expenses include public company costs, corporate administration expenses, amortization expense
 
 
 
Healthcare
  
DNA
  
Corporate/
Other
  
Consolidated
 
Depreciation and amortization
 
  
  
  
 
 
 
  
  
  
 
Year ended December 31, 2013
 
$
13,522
  
$
3,949
  
$
49
  
$
17,520
 
Restructuring and Other One Time Charges
                
 
                
Year ended December 31, 2013
 
$
2,886
  
$
405
  
$
565
  
$
3,856
 
 
                
Assets as of December 31, 2013
 
$
333,789
  
$
42,894
  
$
5,728
  
$
382,411
 
 
                
 
 
Healthcare
  
DNA
  
Corporate/
Other
  
Consolidated
 
Depreciation and amortization
                
 
                
Year ended December 31, 2012
 
$
16,049
  
$
4,187
  
$
59
  
$
20,295
 
Restructuring and Other One Time Charges
                
 
                
Year ended December 31, 2012
 
$
333
  
$
497
  
$
-
  
$
830
 
 
                
Assets as of December 31, 2012
 
$
412,841
  
$
33,207
  
$
(9,195
)
 
$
436,853
 
 
                
 
 
Healthcare
  
DNA
  
Corporate/
Other
  
Consolidated
 
Depreciation and amortization
                
 
                
Year ended December 31, 2011
 
$
19,311
  
$
2,165
  
$
732
  
$
22,208
 
Restructuring and Other One Time Charges
                
 
                
Year ended December 31, 2011
 
$
1,216
  
$
-
  
$
-
  
$
1,216
 
 
                
Assets as of December 31, 2011
 
$
354,442
  
$
47,722
  
$
48,223
  
$
450,387
 

Foreign sales account for approximately 7%, 6%, and 9% of our net sales in 2013, 2012, and 2011, respectively, and sales in foreign currency represented approximately 2%, 3%, and 2%, respectively, of our net sales in 2013, 2012 and 2011.
 
The following tables present certain geographic information, based on location of customer:
 
 
 
Net Sales for the Years Ended December 31,
 
 
 
2013
  
2012
  
2011
 
United States of America
 
$
216,560
  
$
232,848
  
$
211,907
 
Europe
  
7,566
   
8,687
   
8,767
 
Japan
  
2,061
   
2,190
   
5,312
 
Korea
  
1,105
   
1,018
   
1,449
 
Canada
  
1,718
   
1,707
   
1,598
 
Other
  
2,657
   
2,454
   
3,395
 
Total Net Sales
 
$
231,667
  
$
248,904
  
$
232,428
 

 
 
Long Lived Assets
 
 
 
2013
  
2012
  
2011
 
United States of America
 
$
4,184
  
$
4,316
  
$
3,866
 
Canada
  
487
   
569
   
520
 
Europe
  
68
   
79
   
3
 
Other
  
-
   
-
   
2
 
Total
 
$
4,739
  
$
4,964
  
$
4,391